Recapping the Majors
EUR/USD– The Euro traveled o 3600 but was unable to break that level and proceed to fall back towards 3550. However, late in the day the Euro picked up momentum again and is once again testing the 3600 resistance.
Result: The Euro rallied for the 5th straignt day against the Dollar but still has not broken through the 3600 resistance.
GBP/USD- After briefly surpassing the 2.0100 mark, the Sterling fell back and ended up closing right where it opened at around 2.0067. The Sterling had previously rallied against the Dollar for the past 6 days and finally slowed down today.
Result: The Sterling and Dollar stood at a standstill as neither currency was able to push the other in its direction.
USD/CHF- The Dollar continued to fall against the Swissy and got down to as low as 2024 before retracing back up and closing right around 2050. Today was the 2nd consecutive day the Dollar lost against the Swissy and both days have been substantial losses.
Result: The Dollar fell hard once again to the Swissy and may be headed towards the 2000 mark.
USD/JPY- The Yen started the day off strong, pushing the Dollar down to as low as 118.10. However, the Greenback staged a late comeback and managed to push the pair up to 118.67 which was only 15 pips from its opening price at 118.82. Regardless, this is the 2nd straight day of gains made by the Yen and we could see the pair pick up speed.
Result: The Yen finished out the day with only a slight gain against the Dollar.
Chart Analysis: What’s going to happen next?
Well the Euro did find resistance at 3600 for a brief moment but it looks as though the Euro may not be done with its rally. Sure the daily stochastics are in overbought territory but they are trending up. For added confirmation, the 4hr stochastics are also trending up. I think it’s not out of the question to see the Euro rally to 3625-3650 before taking another breather.
Well the Sterling did repeat history as it fell hard from the 2.0100 level like it did in 1992. Today’s candle formed a spinning top which could indicate a reversal is ready to happen. I would expect the pair to hold resistance at 2.0100 and I think we’ll see a move back down to 2.000. 4hr stochastics are trending down and daily stochastics are in overbought territory which adds merit to my bearish biasness.
The Swissy looks like it’s poised to continue to fall to at least 2000. Daily stochastics are heading into oversold territory but they are still trending down and 4hr stochastics are also in oversold territory but appear to be crossing down. The one problem I have is that today’s low was at 2024 and back on March 15th, the Swissy got to 2029. This could be a nice support level. However, if the pair can break this, then I think there is a very good chance we’ll see it hit 2000.
This pair fell nicely early on but lost momentum and ended up rising back up to 118.67. Daily stochastics are still trending down nicely but 4hr stochastics are trending up and appear to be heading out of oversold territory. Currently the pair is trading at around 118.41 and I think we could see it retrace back up to around 118.60, but I think we could see the pair fall right back down to 118.00